Soaring revenues from cloud services ensured earnings from IBM and Microsoft gave us a positive start to this big earnings week for tech. Now comes the hardware crunch, with both Tesla and Apple struggling with component shortages.
The electric vehicle pioneer was first to report on Wednesday evening, warning its factories had been “running below capacity for several quarters as [the] supply chain became the main limiting factor”, a trend “likely to continue through 2022”. Its shares are down nearly 9 per cent so far today.
Despite the limiting factors, Tesla’s volume growth this year should be “comfortably above 50 per cent”, said CEO Elon Musk. Last year, Tesla delivered 936,222 vehicles, an annual gain of 87 per cent.
He also pledged the most profound software update in history to “solve” full self-driving technology in 2022 — a claim he has made in previous years without success. Lex has been investigating the liability issues when things go wrong, while Alphaville looks at the implications of Musk saying the most important development work at Tesla this year will be on its Optimus robot.
Apple’s earnings call is after the market close on Thursday. Three months ago, chief executive Tim Cook blamed “supply constraints” and a crisis in obtaining high-end chips for a $6bn revenue hit, reports Patrick McGee. Cook added “the impact from supply constraints will be larger during the December quarter” — a line interpreted to mean a $10bn-plus hit.
As we reported on Wednesday, the US commerce department has found manufacturers’ inventories on average have only five days of chip supplies, as demand increased 17 per cent in 2021 compared to two years earlier.
“Apple will very likely still report a monster quarter, blowing past its previous quarterly revenue record set [last year],” says Neil Cybart, independent analyst at Above Avalon who is projecting $127bn in revenue. “However, reported results could have been even stronger.”
The Internet of (Five) Things
1. Ocado moves to lighter robots
While Tesla focuses on Optimus, grocery logistics company Ocado has unveiled a range of automation improvements from lighter robots to improved grocery picking. In FT Magazine, John Gapper tells the twisted tale of the battle between Ocado and Norway’s AutoStore concerning a remote village, a world-changing invention and the epic legal fight that followed.
2. Crypto-kickers’ monster mash
The safekeepers of crypto assets are attracting billions of dollars from investors, with Fireblocks becoming the highest valued crypto asset custodian on Thursday after raising $550m in a new funding round that puts an $8bn price tag on the company. Meanwhile, we have more on Meta preparing to abandon its Diem crypto project, an opinion piece on the UK bringing the promotion of crypto assets under the umbrella of financial services regulation, and Martin Sandbu on how the main objection to digital currencies is misguided. Finally, the head of Upbit, South Korea’s biggest cryptocurrency exchange, has promised that its non-fungible tokens featuring K-pop stars BTS will be “eco-friendly” after a backlash from environmentally conscious young fans.
3. Netflix targeted as tech swoons
Pershing Square, Bill Ackman’s investment group, has bought 3.1m shares of Netflix in recent days as the hedge fund billionaire seeks to capitalise on a sharp sell-off that has almost halved the streaming company’s market value in the past few months (Blackstone is also on the lookout for tech bargains). Anna Nicolaou says the Netflix sell-off has been unsettling for Hollywood after its own efforts to copy the streaming model, although WarnerMedia signed up more US subscribers to HBO Max than Netflix’s additions in the fourth quarter.
4. Has the appetite for plant-based meat peaked?
Consumer interest in plant-based meats surged around the flotation of US start-up Beyond Meat in 2019. But sales growth is falling in the US and the UK. Investment is continuing, with $3bn raised in 2021 — but are products failing to meet taste expectations?
5. San Francisco is scaring away the tech crowd
As a failure to tackle the epidemic of poverty continues, start-up founders, engineers and venture capitalists are leaving the city. If it wants its tech crown back, it cannot afford to just continue as normal, writes Hannah Murphy.
Tech tools — Loftie alarm clock
Dreamt up by a New York start-up, this smart alarm clock has a simple raison d’être: it aims to banish your phone from the bedroom while you sleep, writes Jamie Waters. Everything about the $149 Bluetooth-enabled device — which plugs into the wall and is operated via an app or, more sensibly, by pressing its physical buttons — contributes to a soothing ambience. Its forte is its sound. It boasts a multitude of aural functions including a white-noise machine, meditation and breathing exercises, gong-infused sound baths, and other background comforts including chirruping cicadas and a crackling campfire that’s sure to get eyelids drooping. Read about it in this round-up of four gadgets to kick-start your day.
"chips" - Google News
January 28, 2022 at 03:01AM
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Chips are down as Tesla and Apple suffer growth pains - Financial Times
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